new mitch mcconnell is negotiating with vice president joe biden. if political leaders can not come up with a plan by midnight tonight tax rates for all americans will increase. >> if there is an ultimate compromise, there will be parts of it i find disgusting and rep hencable which i may have to swallow in the name of finding a compromise. >> reporter: how will this effect you come tomorrow morning? if there is not a deal reach there won't be a drastic change in your next paychecks. if this plays out long-term the average american middle class family stands to lose out on $2,000 to $3,000 over the next year due to the increased taxes. live in washington kyla campbell ktvu channel 2 news. >>> 5:14 meanwhile with all the focus on the fiscal cliff a new bill to prevent the so-called dairy cliff is sitting on the back burner. leaders agreed to a one-year extension of the expiring u.s. farm bill. so far there is no house vote scheduled without passage of the bill milk prices could double next month. estimates are a gallon of milk could go up to $8 a gal